The intimate Palacio Azul began life as the private home of a wealthy tobacco baron. Renovated by Cubanacan into an inn in 2004, the Palacio Azul is located next door to the Cienfuegos Yacht Club and just a short walk from Cienfuegos' main square.

Palacio Azul offers lodging in 6 rooms with private bath, air conditioning, satellite TV and telephone.

While located on the water, the rooms do not offer a water view, but accommodations offer friendly service and reasonable rooms at a very reasonable price. A restaurant and bar are located on the property.